Ombudsman will handle complaints on failed digital transactions

In its 'Statement on Developmental and Regulatory Policies' issued today, the RBI has announced setting up of ombudsman for digital transactions. "With the digital mode for financial transactions gaining traction in the country, there is an emerging need for a dedicated, cost-free and expeditious grievance redressal mechanism for strengthening consumer confidence in this channel. It has therefore been decided to implement an ‘Ombudsman Scheme for Digital Transactions’ covering services provided by entities falling under Reserve Bank’s regulatory jurisdiction. The scheme will be notified by the end of January 2019," it said.

Given the rapid adoption of digital payments across the country, the RBI in its Annual Report for 2017-18 had said it was considering a plan to establish a separate ombudsman to handle consumer complaints related to digital transactions.